The Beginning of VeChain

VeChain was launched in 2015 as a blockchain based cryptocurrency project. Its main purpose was to streamline the supply chain management industry.

VeChain creators first experimented with the Internet of Things and a blockchain network in 2016.

The information provided here is for informational purposes only and should not be seen as investing advice. Our opinions on this site are only that, if you are considering an investment into cryptocurrency or anything we speak about on this site, please advise a trusted financial professional first, before doing so.

How it started?

While still working for BitSe, a Chinese blockchain firm, VeChain founder Sunny Lu and others raised the idea of creating a better blockchain that was superior to those that were already in the market.

They settled on building VeChain atop the Ethereum blockchain.

One of the flaws they noticed in most blockchains was the decentralization of people, something that dealt a blow to the projects governance and consensus models because of the diverse opinions of the participants.

They introduced what they call "harmony in governance" by adopting a Proof of Authority Consensus algorithm.

Their plan worked.

Since 2016, VeChain has been on a growth trajectory, attracting top partners and growing its value by a large margin.

The technology behind it...

It allows developers to write smart contracts to track and manage their inventories.

The platform uses its VeChain Identity (VID) technology to track the movement of goods in the supply chain, right from the manufacturers warehouse to the consumer.

The VID is stamped onto a QR code or a Near Field Communication (NFC) on the product for easier tracking of goods.

All the information is then recorded on distributed ledgers that cannot be altered by anyone, thus preserving the trust and transparency of the VeChain platform.

VeChain creators realized early on that the open governance models used by most cryptocurrencies weren't effective and thus based their platform on a unique Proof of Authority protocol.

All in all, their concept revolves around a harmonized governance structure that seeks to address one of the major flaws of the blockchain; decentralization of people.

In a nutshell, VeChain doesn't rely on the consensus of the network but on the identity of the validator.

The platform relies on automated nodes to confirm transactions. Having streamlined voting and governance aspects of the platform, VeChain is able to deliver high frequency, high-speed transactions.

Features

Initially, VeChain's base cryptocurrency was known as VEN, but that changed from February 2018 when its founder, Sunny Lu, rebranded the platform to VeChain Thor. Lu also announced that Vechain would move from the Ethereum platform to its own blockchain.

Others are, Jiangsu Printed Electronics and DNV GL. It's also one of the few blockchain projects to have partnered with the Chinese government.

Pros of Purchasing VET

Every investor looks for ways of profiting from an investment.

Given that VeChain is one of the fastest growing cryptocurrencies in the industry, buying VET tokens seems like a good move for committed blockchain enthusiasts.

Here are the pros of buying VET tokens:

a) You stand to earn passive tokens

For every VET coin you hold, you stand a chance to earn Thor tokens and this is emerging as an excellent avenue for investors looking to make some money.

The more VET tokens you hold, the more THOR you stand to earn.

You can always use your THOR to run decentralized applications or to execute smart contracts.

b) VeChains big-ticket partnerships

Seeing a company you've invested in attracting big name partnership is a welcomed feeling.

VenChain has inked several deals with companies such as PwC, BMW, and Renault.

Such partnerships boost investors confidence as they see the bright future that awaits them in case the project turns into a roaring success.

c) Rising prices of VET

Given the volatile nature of cryptocurrencies, any slight rise in price of tokens gives you a feel good feeling. Since January when most other cryptocoins have seen their prices drop, VeChain's price has not been affected.

Instead, it has been on the rise. As of writing, the VET token was trading at $0.0155.

d) Ready product

VeChain already provides a supply chain management solution to a number of businesses in the agriculture, luxury goods, and wines industries.

It's not one of those projects with brilliant ideas on paper but no product to show.

As such, this gives you the confidence that the project holds a bright future now that its product has been tried and tested.

Cons of buying VET tokens

a) Competition

There's no escaping the fact that VeChain is not the only blockchain project focusing on supply chain management.

If anything, there are other established companies like Waltonchain and Modum, and many other ICO projects that are launching.

Its success merely depends on how it stacks up against the competition.

The only advantage they have is that they rebranded and are now moving towards providing enterprise Apps, competing directly with the likes of Ethereum.

b) Lack of adoption

The platform relies on VET tokens to run its business activities.

As such, it must meet widespread adoption to create the necessary demand for VET tokens. In case it fails to gain huge adoption, the demand for VET and its value could go down.

c) VeChain Thor is a work in progress

While the rebranded product seems promising, it's still in the development stages and no one really knows how it fares as an enterprise dAPPs platform. Its chances of success can only be weighed when it becomes fully functional.

d) Many tokens could be confusing

There seems to be so many activities going on in the VeChain platform. From a rebranding exercise that changed the name of VEN to VET, to a new twin token model that introduces the THOR tokens.

For the typical investor, this could get a bit confusing and might need time to internalize.

Where to buy VET tokens

It's important to note that VET tokens cannot be mined.

That being the case, there are a few options available to you if you need to buy some VET tokens.

These include; buying from family or friends or trading an altcoin with VET in an exchange.

Fortunately, the tokens are listed in a number of exchanges, including Binance and HitBTC so getting some won't be a problem.

VET Wallet

A digital wallet is a medium where you store your coins safely and securely.

VET tokens are ERC20 compliant and can be stored in any Ethereum based wallet.